Monday, December 11, 2023

Strategic partner for the Pedernales project must contribute US$570 million over the next four years

-Madrid Spain.- The executive director of the General Directorate of Public-Private Partnerships (DGAPP), Sigmund Freund, affirmed that with the search for a private partner for the tourism development of Pedernales, the Government intends to obtain a minimum of US$570 million of private capital available for the next four years.

“Any group that is going to associate with the Dominican State must demonstrate that it has the possibility of contributing US$570 million in the next four years; without that there can be no partner and, in addition, they must have certain experiences in the development of tourist destinations, experience in managing airports (…), in managing commercial areas and in hotel development,” Freund explained during interviews with to different media outlets participating in the Madrid International Tourism Fair (Fitur 2023).

Freund said a month ago that the Pro-Pedernales Trust launched the competitive process for the search for a strategic partner for the realization of the Master Plan of the Pedernales Tourism Development Project. Recently, an extension was granted until February 20, for interested investors to present their credentials and expression of interest.

He explained that within the framework of Fitur they have held important meetings with several groups of investment funds and large-scale Spanish infrastructure companies that have shown interest in the project and want to know the guarantees of the Dominican Government.

The official expressed that the idea is that by August of this year the strategic partner has already been selected, so that the capital begins to flow from September. “We are going to start the construction of the first two hotels with public funds now in February and we need the injection of capital so that in September we can continue with the construction of the other seven hotels and the airport.”

He explained that the competitive process for the search for a strategic partner is divided into three stages and the process is in the stage of qualification of bidders or presentation of credentials, in which groups or consortiums are required to present legal documentation and that demonstrates its economic and financial solvency and its experience in the development of projects of this nature.

Freund explained that PPPs have greater opportunities to contribute to the tourism sector and assured that “the tourism sector, without a public-private link, it is impossible to develop (…) the best example is what happened in Cancun-Mexico” and stressed that in this country it was developed under the figure of the public trust, “which still works efficiently”.

Abinader will inaugurate the first two hotels in February

When answering the questions from the journalists of the Zol de la Mañana program, Freund reiterated that the President of the Republic, Luis Abinader, will be in Pedernales on February 5, starting work for the construction of the first two hotels in Cabo Rojo, one which will be operated by the Iberostar chain with 580 rooms and another by AM Resort with 530 rooms, “1,100 rooms will be built as of February,” emphasized Freund.

Accompanied by his work team, Freund participated in different meetings with groups of investors and infrastructure companies interested in developing projects in the Dominican Republic under the model of public-private alliances.

These meetings include the one held with the hotel groups The Excellence Collection and Iberostar, and the investment company Azora Capital Sociedad Limitada and other groups with investment interest.

Arroyo Barril-Samaná Cruise Terminal

The executive director of the DGAPP revealed that it is estimated that, at the end of February, the first PPP contract of this management will be awarded, which will be for the conversion of the Duarte de Arroyo Barril port in Samaná into a cruise terminal, for which the investor that is selected will have to invest US$60 million.

Freund pointed out that there are two international companies that operate interested cruise ports, which participate in the competitive process and it is estimated that, by the end of February, after the presentation of technical proposals, the award will be achieved.

He added that this work will generate 3,000 direct and 9,000 indirect jobs in the first two years and stated that 400,000 cruise passengers are expected to arrive through this terminal as of 2026.

About Fitur 2023

The new edition of the International Tourism Fair, better known as Fitur, takes place from January 18 to 22, 2023 (18 to 20 for professional public) at the Ifema Madrid fairgrounds.

The Fair takes place over five days and welcomes in the same space both professionals from the tourism sector and those interested in the latest trends in the sector, as well as the general public interested in learning about the destinations offered and presented at the fair over the weekend. .

The 2023 edition has Guatemala as a partner country and the presence of the tourist offer of more than 130 countries


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